The head of your company's marketing department has asked you to explain to him what is cost of capital and how one would estimate the company's cost of capital. You can assume the company is a public company and the marketing director has some knowledge of finance but is not familiar with terms such as WACC, CAPM or DDM. Prepare a memo to the marketing director (using appropriate words and terminology given knowledge base) to explain how one calculates the cost of capital and what it means. Submit your answer in a word document.